Gokhran Expected to Sell Gold to Help Financing Additional Purchase of Diamonds

According to IDEX Online, Russian Finance Minister Alexei Kudrin was quoted saying that Gokhran, the Russian repository of precious metals and gemstones, intends to sell off approximately 30 tons of Gold to the Russian Central Bank and utilize the funds from the sale to purchase diamonds as well as additional resources.

Kudrin additionally stated that the gold sale deal is likely to be carried out before the end of the year and is currently being finalized, and that none of the gold would enter the Russian market.

He additionally reported of plans to buy 31 billion rubles (about $1 billion) in rough diamonds from diamond company Alrosa before the end of the year – which coincides with previous reports that Gokhran’s annual budget for diamond purchases stands at approximately $1 billion.

Kudrin is quoted stating that Gokhran plans to buy diamonds for the repository at nearly similar price volumes, stating that they intend to achieve several goals, both topping the Russian budget upwards with high prices of Gold, as well as assisting industrial development through low-price purchase of diamonds, with the price of diamonds currently at its lowest level in 15 years.